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Guernsey Remains Leader In Non-UK Listings

by Jason Gorringe, Tax-News.com, London Friday, January 27, 2012

Guernsey remains home to more non-UK entities listed on the London Stock Exchange (LSE) than any other jurisdiction globally, according to figures from the market authority.

LSE data shows that at the end of December 2011 there were 108 Guernsey-incorporated entities listed on either the Main Market, the Alternative Investment Market (AIM), the Specialist Fund Market (SFM) or as ‘Trading Only’.

This is comfortably more than the major economic powers of the US (47), Russia (33), India (31), Australia (26), South Africa (11), Germany (7), China (5) and France (4). It was also well ahead of competitor centres Jersey (69), Ireland (57), the Isle of Man (53), Bermuda and the Cayman Islands (both 45) and the BVI (39). These are trailed by Luxembourg (14), Gibraltar (4) and Malta (0).

Guernsey also leads the way in terms of new entities listed on the LSE markets during last year, with 12 added by both Guernsey and Jersey during 2011. This is followed by the Isle of Man and Russia (both 7) and Australia and the Cayman Islands (both 5).

Fiona Le Poidevin, Deputy Chief Executive at Guernsey Finance , the promotional agency for the island’s finance industry, said: “These figures show that Guernsey remains the jurisdiction of choice for entities listing on the London Stock Exchange. The fact that so many companies and securities on the exchange are incorporated in Guernsey means that we have developed significant expertise of London listings. The way in which this is recognized by professional advisers in the City and elsewhere is demonstrated by our position at the forefront of new listings during 2011."

“Guernsey companies also received approval to list on the Hong Kong Stock Exchange (HKEx) during last year, which added to the capability to list on stock exchanges in London, Amsterdam, Frankfurt, Australia and Toronto, among others, as well as the local Channel Islands Stock Exchange (CISX). This means that Guernsey provides a gateway to access the capital markets of both Europe and Asia, where the developing economies are accumulating increasing amounts of private and corporate wealth and looking for suitable investment opportunities. We have already held discussions in Singapore and Shenzhen and we will be moving these forward during this year with a view to Guernsey companies listing on these exchanges in the future.”

Figures from the LSE show that of its peer-group, Guernsey (60) has the most number of entities listed on the Main Market of the LSE, followed by Jersey (34), Ireland (28) and Bermuda (24).

The Isle of Man (41) is home to the most number of AIM-listed entities, with Guernsey (38) taking second place, then the Cayman Islands (37) and the BVI and Jersey (both 34).

Guernsey is also home to nearly three-quarters of all listings on the SFM.

In addition, Guernsey is the clear market leader in terms of the number of ‘Equity Investment Instruments’ - the majority of investment funds listed on the LSE - where Guernsey has 68, followed by the Cayman Islands (15) and Jersey (11).

Patrick Firth, Chairman of the Guernsey Investment Fund Association (GIFA), said: “It is very encouraging to see that fund professionals continue to recognize Guernsey’s strong capabilities for listing a wide variety of fund structures on such a major international stock exchange. The island is seeing particularly good growth in closed-ended funds and in particular, those investing in alternative asset classes and where there is a demand to list on a stock exchange whether the local CISX or further afield in London, continental Europe or beyond into Asia.”

A comprehensive report in our Intelligence Report series giving a country-by-country analysis of offshore investment funds, stock exchanges and trusts, with an analysis of the US QI regime, is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report9.asp

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